Mod 32 Agency

Question 1

Minors can…

Answer 1

Minors can be agents

Question 2

3 parties who are all considered agents

Answer 2

1 partners

2 corporate officers

3 employees

Question 3

Agency requires…2

Answer 3

1 requires meeting of the minds

2 does not require consideration

Question 4

Power of attorney

Answer 4

Written authorization of agency

Question 5

Power of attorney need only…2

Answer 5

1 Need only be signed by principal

2 not agent

Question 6

With power of attorney the agent does…

Answer 6

Does not have to be an attorney at law

Question 7

Power of attorney usually limits…

Answer 7

Limits agent’s authority to specific transactions

Question 8

2 agencies that require writing

Answer 8

1 agencies to buy land

2 agencies impossible to perform in 1 year

Question 9

Most agencies are terminable…

Answer 9

Are terminable at will

Question 10

Most agencies are terminable at will, but if you breach a contract…

Answer 10

You must pay damages

Question 11

Termination by law: following 4 terminate agency immediately

Answer 11

1 death or insanity of either party
2 bankruptcy of principal
3 loss or destruction of essential subject to agency
4 failure to have or loss of a required license

Question 12

Bankruptcy of an agent…

Answer 12

Does not end the agency

Question 13

Agency coupled with an interest 2

Answer 13

1 P makes A an agent

2 solely to pay debt P owes to A

Question 14

Under, Agency coupled with an interest, how is it terminated?

Answer 14

P cannot terminate this agency, only A can

Question 15

Death or insanity does not end…

Answer 15

Agency coupled with an interest

Question 16

Termination of Agency:

If A is terminated, P must…2

Answer 16

1 give actual notice to old customers and

2 publish notice to new ones

Question 17

2 types of authority

Answer 17

1 real authority

2 actual authority

Question 18

Real or actual authority may be…

Answer 18

Express or implied

Question 19

Express authority

Answer 19

P tells A he’s authorized

Question 20

Implied authority

Answer 20

Authority necessary to do assigned tasks

Question 21

Apparent authority or agency by estoppels

Answer 21

A appears authorized (was it reasonable to believe A was authorized)

Question 22

Liability for contracts:

P is liable for…

Answer 22

all authorized contracts made by A on his behalf

Question 23

P is not authorized for unauthorized contracts unless…

Answer 23

P ratifies

Question 24

3 requirements for P to ratify

Answer 24

1 P must know all material facts to ratify
2 if P accepts the benefits of the deal he’s ratified
3 for P to ratify, A must indicate he was making contract on behalf
Of P

Question 25

Once P ratifies...

Answer 25

3rd parties are stuck with the deal

Question 26

A is liable for...

Answer 26

All unauthorized contracts

Question 27

A is not liable for...

Answer 27

Authorized deals unless acting for an undisclosed principal

Question 28

Undisclosed principal

Answer 28

A makes contract in his own name while really acting for a secret P

Question 29

Undisclosed principal: Actual authority of A 2) Apparent authority of A

Answer 29

A has same actual authority as agent for disclosed principal 2) A cannot have apparent authority

Question 30

Undisclosed principal: If there is a breach...

Answer 30

Both P and A are liable

Question 31

3rd party cannot...

Answer 31

Cannot get out of a deal because of undisclosed P

Question 32

Respondent Superior

Answer 32

Liability for Torts

Question 33

Liability for Torts: P is responsible for...

Answer 33

All torts committed by A while acting in scope of agency

Question 34

Liability of Torts: P isn't liable for...

Answer 34

Isn't liable for torts of independent contractors

Question 35

P isn't liable for torts of independent contractors

Answer 35

Not subject to the same control

Question 36

Liability of Torts: P is liable even if...

Answer 36

Agent's tort was flagrant disregard of instructions

Question 37

Liability of Torts: A is liable for the tort even if...

Answer 37

Committed at P's direction or order

Question 38

Liability of Torts: Employees injured in scope of employment...

Answer 38

Collect Worker's comp even if negligent

Question 39

Duties of Principal and Agent: P owes the following duties to A, what is the neumonic?

Answer 39

ICE

Question 40

Duties of Principal and Agent: P owes the following duties to A, what does ICE stand for?

Answer 40

1 Indemnify 2 Compensate 3 Expenses

Question 41

Duties of Principal and Agent: P owes the following duties to A I

Answer 41

Duty to Indemnify A for losses incurred while acting for P

Question 42

Duties of Principal and Agent: P owes the following duties to A C

Answer 42

Duty to Compensate A (Must keep records)

Question 43

Duties of Principal and Agent: P owes the following duties to A E

Answer 43

Duty to reimburse A for Expenses

Question 44

Duties of Principal and Agent: A owes the following duties to P, what is the neumonic?

Answer 44

DIAL-O

Question 45

Duties of Principal and Agent: A owes the following duties to P What does DIAL-O stand for?

Answer 45

``` 1 Due care 2 Inform 3 Account 4 Loyalty 5 Obedience ```

Question 46

Duties of Principal and Agent: A owes the following duties to P (DIAL-O): D

Answer 46

Duty of Due care

Question 47

Duties of Principal and Agent: A owes the following duties to P (DIAL-O): I

Answer 47

Duty to Inform P of all relevant facts

Question 48

Duties of Principal and Agent: A owes the following duties to P (DIAL-O): A

Answer 48

Duty to Account for money received or spent (must keep records)

Question 49

Duties of Principal and Agent: A owes the following duties to P (DIAL-O): L

Answer 49

Fiduciary duty of Loyalty- must act solely in P's best interest

Question 50

Duties of Principal and Agent: A owes the following duties to P (DIAL-O): O

Answer 50

Duty of Obedience, must follow P's reasonable instructions

Question 51

Agent

Answer 51

Anyone authorized to act on behalf of another